Two apps - “Headspace” and “Calm” - are in a fight to the death for control of the mindfulness market. They have a lot in common: “Both startups are venture-backed, founded by charismatic British guys who moved to California. ...And both apps have been downloaded more than 38 million times, with each hitting 1 million paid subscribers ....”. Calm has revenue of about $50 million through October 2018. Headspace is in second place with revenue of $34 million.
What is really going on here?
Meditation and mindfulness are big business: the overall meditation market is $1.2 billion and growing. And it is attractive to business because studies show meditation can reduce stress and improve sleep, and hence possibility improve worker productivity.
So much in healthcare and wellness is now happening far from the “doctor’s office.” An entire world - both app-based and bricks-and-mortar - has emerged to meet the needs of consumers seeking peak wellness. Yet the legacy medical industry is very slow to acknowledge this and is unprepared to respond.
Consumers will pay for wellness apps
But As mentioned in this article, apps will seek to be covered by insurance by first gaining FDA approval as prescription app (sounds good, but a mistake in my view. Insurance and prescribing providers will layer in complexity and mess this up).
Watch how these and other apps mine the corporate world and self-insured employers.
Read WSJ: Headspace vs. Calm: The Meditation Battle That’s Anything but Zen